can result in changed value
? Resources of different firms can be valuable in different ways (e.g., Timex versus Rolex)
? Value = Lowered costs or increased revenues or both
SCARCITY of resources and capabilities
? Resources and capabilities must be in short supply to create competitive advantage (and go beyond competitive parity)
? What would happen if this were not the case?
? An analysis of the firm's resources and capabilities must include critical assessment whether they are unusual when compared to those of competitors
? How rare does a resource have to be in order to have potential for generating a competitive advantage?
? Example of a rare resource: Wal-Mart's point-of-purchase inventory control system
? To be a source of sustained competitive advantage the rarity of the resource must persist over time
INIMITABILITY of resources dans capabilities
? Requirement for sustained competitive advantage
? Ease of imitation depends on
o Cost asymmetries ("Do firms without a resource or capability face a cost disadvantage in obtaining it compared to firms that already possess it?")
o Capabilities of competitors
? Sources of cost asymmetries / cost disadvantages fall into two categories :
o Impediments to imitation : Impede rivals from duplicating critical resources and capabilities
o Early-mover advantages : Set in motion a dynamic that increases the magnitude of that advantage relative to other firms over time
Impediments to imitation :
o Legal restrictions on imitation :
? Patents, copyrights, trademarks
? Governmental control over entry into markets (licensing, certification, quotas on operating rights)
o Superior access to inputs or to customers
o Market size and scale economies
o Intangible barriers to imitation
? Causal ambiguity
? Dependence on historical circumstances
? Other path dependencies
? Social complexity
Degrees of resource and capability imitability
Source: C... displayed 300 characters
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can result in changed value
? Resources of different firms can be valuable in different ways (e.g., Timex versus Rolex)
? Value = Lowered costs or increased revenues or both
SCARCITY of resources and capabilities
? Resources and capabilities must be in short supply to create competitive advantage (and go beyond competitive parity)
? What would happen if this were not the case?
? An analysis of the firm's resources and capabilities must include critical assessment whether they are unusual when compared to those of competitors
? How rare does a resource have to be in order to have potential for generating a competitive advantage?
? Example of a rare resource: Wal-Mart's point-of-purchase inventory control system
? To be a source of sustained competitive advantage the rarity of the resource must persist over time
INIMITABILITY of resources dans capabilities
? Requirement for sustained competitive advantage
? Ease of imitation depends on
o Cost asymmetries ("Do firms without a resource or capability face a cost disadvantage in obtaining it compared to firms that already possess it?")
o Capabilities of competitors
? Sources of cost asymmetries / cost disadvantages fall into two categories :
o Impediments to imitation : Impede rivals from duplicating critical resources and capabilities
o Early-mover advantages : Set in motion a dynamic that increases the magnitude of that advantage relative to other firms over time
Impediments to imitation :
o Legal restrictions on imitation :
? Patents, copyrights, trademarks
? Governmental control over entry into markets (licensing, certification, quotas on operating rights)
o Superior access to inputs or to customers
o Market size and scale economies
o Intangible barriers to imitation
? Causal ambiguity
? Dependence on historical circumstances
? Other path dependencies
? Social complexity
Degrees of resource and capability imitability
Source: C... displayed 300 characters
